QUESTION: We are always reading about a buyer's or seller's market in real estate articles. What exactly are they talking about?

ANSWER: Traditionally a buyer's market is "a market condition characterized by low prices and a supply of commodities exceeding demand." In other words, it’s the old and proven supply and demand principle. In real estate terms it means there are more available houses for sale than there are available buyers. With a surplus of house listings to choose from, home buyers become more selective and sellers more anxious to sell often at attractive prices.

On the other hand, a seller's market is the reverse. You have many ready buyers shopping a smaller market of available homes. In this type market, sellers generally have the upper hand and can command good offers, often above the listed price. Some sellers will refuse offers with any contract contingencies, including a pre-purchase home inspection. Home Inspection Issues, concerns, tips and information This is foolish since any defects, which would have been disclosed in a professional home inspection (read HouseMaster), don't vanish. They will surface post-purchase and be much more difficult to deal with for all the parties involved. It's always better to be safe, not sorry. We hope you can now better understand the terms.